IDEAS home Printed from https://ideas.repec.org/p/ris/adbewp/0048.html
   My bibliography  Save this paper

Is Export-led Growth Passe? Implications for Developing Asia

Author

Listed:
  • Felipe, Jesus

    (Asian Development Bank)

Abstract

Some authors have recently begun questioning the advantages of the export-led growth (ELG) strategy that some Asian countries followed and that yielded impressive results. They argue that ELG suffers from a fallacy of composition, in that not all developing countries can pursue it simultaneously, and recommend a shift to domestic demand-led growth (DDLG). This paper argues that although the encouragement of a gradual shift to DDLG is a welcome effort, ELG and DDLG need not be presented as incompatible strategies. The countries in the region need some form of ELG to achieve economies of scale. Hence, the ELG strategy is still the best option for most developing Asian countries. ELG is not simply about exporting, but exporting in the context of a development strategy based on upgrading. In the end, it is about achieving a golden combination between ELG and DDLG. Finally, the discussion of the policies to resume growth after the financial crisis has to be framed in the more general context of what is constraining growth today. In this author's view, demand is what constrains growth.

Suggested Citation

  • Felipe, Jesus, 2003. "Is Export-led Growth Passe? Implications for Developing Asia," ADB Economics Working Paper Series 48, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0048
    as

    Download full text from publisher

    File URL: https://www.adb.org/sites/default/files/publication/28337/wp048.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Waterbury, John, 1999. "The Long Gestation and Brief Triumph of Import-Substituting Industrialization," World Development, Elsevier, vol. 27(2), pages 323-341, February.
    2. Kutuk, Yasin, 2022. "Inequality convergence: A world-systems theory approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 150-165.
    3. Justin Yifu Lin, 2017. "Industrial policies for avoiding the middle-income trap: a new structural economics perspective," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 15(1), pages 5-18, January.
    4. Blanco, Luisa & Grier, Robin, 2012. "Natural resource dependence and the accumulation of physical and human capital in Latin America," Resources Policy, Elsevier, vol. 37(3), pages 281-295.
    5. David Colman, 2010. "Agriculture's terms of trade: issues and implications," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 1-15, November.
    6. Justin Yifu Lin & David Rosenblatt, 2012. "Shifting patterns of economic growth and rethinking development," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 15(3), pages 171-194, September.
    7. Mohsen Bahmani-Oskooee & Tsangyao Chang & Zahra (Mila) Elmi & Omid Ranjbar, 2018. "Re-testing Prebisch–Singer hypothesis: new evidence using Fourier quantile unit root test," Applied Economics, Taylor & Francis Journals, vol. 50(4), pages 441-454, January.
    8. Olle Östensson & Anton Löf, 2017. "Downstream activities: The possibilities and the realities," WIDER Working Paper Series 113, World Institute for Development Economic Research (UNU-WIDER).
    9. Teixidó-Figueras, J. & Duro, J.A., 2014. "Spatial Polarization of the Ecological Footprint Distribution," Ecological Economics, Elsevier, vol. 104(C), pages 93-106.
    10. Jiménez, Juan Pablo & Tromben, Varinia, 2006. "Fiscal policy and the commodities boom: the impact of higher prices for non-renewables in Latin America and the Caribbean," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    11. Andre Nassif & Carmem Aparecida Feijo & Eliane Araújo, 2016. "Structural change, catching up and falling behind in the BRICS: A comparative analysis based on trade pattern and Thirlwall’s Law," PSL Quarterly Review, Economia civile, vol. 69(279), pages 373-421.
    12. Giovanni Dosi & Andrea Roventini & Emmanuele Russo, 2020. "Public Policies And The Art Of Catching Up," Working Papers hal-03242369, HAL.
    13. Ibrahim Alshomaly & Walid Shawaqfeh, 2020. "The Effect of Export Diversification on the Economic Growth of West-Asian Arab Countries," Journal of Social Sciences (COES&RJ-JSS), , vol. 9(2), pages 429-450, April.
    14. Ricúpero, Rubens, 2004. "The renewed currency of Raúl Prebisch," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    15. Nazlioglu, Saban, 2014. "Trends in international commodity prices: Panel unit root analysis," The North American Journal of Economics and Finance, Elsevier, vol. 29(C), pages 441-451.
    16. Boris Petkov, 2018. "Natural Resource Abundance: Is it a Blessing or is it a Curse," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(3), pages 25-56, September.
    17. Wells, J., 1988. "Latin America at the cross-roads," ILO Working Papers 992616543402676, International Labour Organization.
    18. Simarmata, Djamester A., 2012. "Appropriate Wage to Economies of Scale for Growth: An Exploratory Study on New Paradigm for Development," MPRA Paper 41581, University Library of Munich, Germany.
    19. Albert Berry, 2001. "When do Agricultural Exports Help the Rural Poor? A Political-economy Approach," Oxford Development Studies, Taylor & Francis Journals, vol. 29(2), pages 125-144.
    20. Hany Fahmy, 2014. "Modelling nonlinearities in commodity prices using smooth transition regression models with exogenous transition variables," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 23(4), pages 577-600, November.

    More about this item

    Keywords

    demand; domestic demand-led growth; economic growth; export-led growth; upgrading;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:adbewp:0048. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Orlee Velarde (email available below). General contact details of provider: https://edirc.repec.org/data/eradbph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.